Abstract:
ABSTRACT
This dissertation was aimed at assessing the impact of tax planning activities
on firms’ performance among the listed firms on the GSE. It also examined the
effects of demographic characters; board size and non-executive membership
impose on tax planning of firms. By employing a pooled panel regression on a
panel data set of listed companies on the Ghana Stock Exchange over the
period of 2010 to 2019, the study found that the size of firm and the stage of
growth along its life cycle do have a positive and significant impact on its tax
planning activities. In addition, the size and composition of the board of
directors also significantly affects a firm’s tax planning decisions and
activities. Large boards are adversarial while the presence of non-executive
directors enhances tax planning. Finally, tax planning was observed to be
negative and significant to firm performance. Based on the findings of the
study, it is worthwhile that companies engage in periodic analysis to assess
their growth trajectory in order to select and implement appropriate tax
planning activities that commensurate their growth stage. Furthermore,
shareholders should consider the inclusion of non-executive directors on the
board even as they strive to maintain a reasonable board size. Finally,
management should engage on cost and benefit analysis on tax planning in
order to select and implement a feasible strategy to leverage for firm
performance.
